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Restructuring and Transformation Charges
 6 Months Ended
Jun. 30, 2019
Restructuring and Related Activities [Abstract]  
Restructuring Charges Transformation, Facility Restructuring and Severance Charges

Due to the highly competitive nature of our business and the continuing losses we incurred over the last few years, we continue to reduce our overall cost structure and workforce to better align our business with current activity levels. The ongoing transformation plan, which began in 2018 and is expected to extend significantly beyond the originally planned year-end 2019 target (the “Transformation Plan”), includes a workforce reduction, organization restructure, facility consolidations and other cost reduction measures and efficiency initiatives across our geographic regions.

The cost reduction plans before the Transformation Plan (“Prior Plans”) included a workforce reduction and other cost reduction measures initiated across our geographic regions due to the ongoing low levels of exploration and production spending. The plans were initiated to reduce our overall cost structure and workforce to better align with current activity levels of exploration and production.

In connection with the Transformation Plan, we recognized restructuring and transformation charges of $20 million and $40 million in the second quarter and first six months of 2019, respectively, which include severance charges of $1 million and $3 million, respectively, other restructuring charges of $15 million and $29 million, respectively, and restructuring related asset charges of $4 million and $8 million, respectively. Other restructuring charges in both periods included contract termination costs, relocation and other associated costs.

In the second quarter and first six months of 2018 we recognized restructuring charges of $38 million and $63 million, respectively, which included severance charges of $29 million and $40 million, respectively and other restructuring charges of $9 million and $23 million, respectively.

The following tables present the components of restructuring charges by segment for the second quarter and first six months ended June 30, 2019 and 2018.
 
Three Months Ended June 30, 2019
 
 
 
Total
(Dollars in millions)
Severance
Other
Severance and
Transformation Plan
Charges
Charges
Other Charges
Western Hemisphere
$
1

$
9

$
10

Eastern Hemisphere
—

2

2

Corporate
—

8

8

  Total
$
1

$
19

$
20


 
Three Months Ended June 30, 2018
 
 
 
Total
(Dollars in millions)
Severance
Other
Severance and
Transformation Plan
Charges
Charges
Other Charges
Western Hemisphere
$
11

$
2

$
13

Eastern Hemisphere
14

4

18

Corporate
4

3

7

  Total
$
29

$
9

$
38



 
 
 
 
 
Six Months Ended June 30, 2019
 
 
 
Total
(Dollars in millions)
Severance
Other
Severance and
Transformation Plan
Charges
Charges
Other Charges
Western Hemisphere
$
2

$
13

$
15

Eastern Hemisphere
1

6

7

Corporate
—

18

18

  Total
$
3

$
37

$
40


 
 
 
 
 
Six Months Ended June 30, 2018
 
 
 
Total
(Dollars in millions)
Severance
Other
Severance and
Transformation Plan
Charges
Charges
Other Charges
Western Hemisphere
$
15

$
2

$
17

Eastern Hemisphere
18

9

27

Corporate
7

12

19

  Total
$
40

$
23

$
63


The severance and other restructuring charges gave rise to certain liabilities, the components of which are summarized below, and largely relate to liabilities accrued as part of the 2016-17 and 2016 Plans that will be paid pursuant to the respective arrangements and statutory requirements.
 
At June 30, 2019
 
Transformation Plan
 
Prior Plans
Total
 
 
 
 
 
 
Severance
 
Severance
Other
 
Severance
Other
and Other
(Dollars in millions)
Liability
Liability
 
Liability
Liability
Liability
Western Hemisphere
$
3

$
2

 
$
1

$
2

$
8

Eastern Hemisphere
2

—

 
1

2

5

Corporate
—

6

 
3

—

9

  Total
$
5

$
8

 
$
5

$
4

$
22


The following table presents the restructuring liability activity for the first six months of 2019. In the first quarter of 2019, we reclassified $12 million of restructuring cease-use liability to the initial ROU asset in accordance with the adoption of Topic 842.
 
 
 
Six Months Ended June 30, 2019
 
 
(Dollars in millions)
Accrued Balance at December 31, 2018
 
Charges
 
Cash Payments
 
Other 
 
Accrued Balance at June 30, 2019
Transformation Plan
 
 
 
 
 
 
 
 
 
Severance liability
$
18

 
$
3

 
$
(14
)
 
$
(2
)
 
$
5

Other liability
16

 
29

 
(34
)
 
(3
)
 
8

 
 
 
 
 
 
 
 
 
 
Prior Plans
 
 
 
 
 
 
 
 
 
Severance liability
6

 
—

 
(2
)
 
1

 
5

Other liability
19

 
—

 
(2
)
 
(13
)
 
4

Total severance and other liability
$
59

 
$
32

 
$
(52
)
 
$
(17
)
 
$
22